Bill > HB1201

This bill addresses insurance challenges for condominiums in Hawaii by establishing tax credits for insurers that provide full property coverage to condominium owners and associations. Specifically, insurers can claim a nonrefundable tax credit equal to 20% of the insurance premium tax for policies covering 100% of a condominium's insurable value, which includes protection against windstorms, hurricanes, hail, flood, fire, and other localized perils. An additional 10% tax credit is available for insurers incorporated within the state. The total tax credits are capped at $50,000 annually, and each tax credit can only be claimed once per structure. To qualify, insurers must be licensed in Hawaii, submit detailed documentation to the insurance commissioner, and apply for a tax credit certificate. The bill aims to encourage comprehensive insurance coverage for condominiums, which will help address challenges in the real estate market, such as meeting lending requirements and facilitating home sales. The tax credits will apply to taxable years beginning after December 31, 2025, and are intended to provide financial incentives for insurers to offer more robust coverage to condominium associations.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1201&year=2026